Q15·
What do we mean by Note Cypher Book?
Ans. Note Cypher book contains all necessary
particulars of the notes issued. When the notes are issued from
fresh stock their particulars are enumerated in the Cypher book
and, thereafter, notes are reckoned as liabilities of the Bank.
Q16·
What is the difference between Home Note Account and Value Account?
Ans. Home Note Account provides information
regarding total value of notes in stock, value of notes in circulation,
daily transactions of notes, notes defaced and destroyed after
verification as well as stock positions at chests/sub chests
fall under jurisdiction of an Issue Circle. While Value Accounts
refer to the value or reserves held by the Bank against the
notes in circulation. Reserves include gold coin, gold bullion
silver bullion, SDR, approved foreign exchange and rupee coins
and approved securities. The sum total of the assets of entire
Issue Department should agree with the total value of notes
in circulation.
Q17· Whether notes held in
Chests form the part of circulation?
Ans. Currency chests are actually storehouses,
which facilitate government treasury business transactions and
notes held in the currency chests do not form the part of circulation
while coins held in the currency chests are assets of the Issue
Department.
Q18· What do we mean by a Foreign
Circle for an Issue Office?
Ans. Each Issue office is a “foreign
circle” for another Issue office. The office of SBP BSC
(Bank) Lahore is a foreign circle for the Karachi office
Q19· What are un-current coins?
Ans. They are defective and unfit coins for
re-issuance and must be remitted to the Mint.
Q20· What are Commemorative
Coins?
Ans. These coins were issued on special occasions
to commemorate occasions or services of national heroes/ dignitaries
who have rendered special services of great significance in
the annals of National history. Commemorative coins are not
part of circulation and are kept as a separate balance. The
following are the commemorative coins issued on various occasions:
Commemorative Coins Issued on Occasions/Celebrations Date
1 a) 50 Paisa coin.b) Gold coins of Rs.500/and silver coins
of Rs. 100. Quaid-E-Azam Birth Anniversary 22nd Dec.197622nd
Feb.1977
2 Gold coins of Rs.1000/, Silver coins Rs.100/ and Rs.1 (Nickel).
Islamic Summit Minar 22nd Feb.1977
3 Gold coins of Rs.3000 and silver coins of Rs.150 & Rs.100/.
Wild Life Conservation Day 9th May- 1977
4 Gold coins of Rs.500, Silver coins of Rs.100 and Rs.1 coin
(Nickel). Birth Anniversary of Allama Iqbal 8th Dec.1977
5 Rs.1 and Pasia 50 coins. ‘Hijra coin’ on advent
of 15th centaury Hijra 5th Nov.1980
6 Rs.1 coin F.A.O - World Food Day 16th Oct.1981
7 Rs.5 coin 50th Anniversary of United Nations 29th Jan.1996
8 Rs. 50 coin Golden Jubilee of Pakistan 22nd Mar.1997
9 Rs.10 coin Silver Jubilee of Senate of Pakistan 13th Aug.1998
10 Rs.10 coin The Year 2003 as Madre- Millat Mohtrama Fatima
Jinnah 31st July 2003
Q21· How does SBP BSC Office
monitor chests affairs?
Ans. Since the inception of SBP BSC (Bank),
inspections of chests have been reactivated. Each office of
SBP BSC (Bank) is required to formulate a plan to ensure that
chests are inspected regularly on quarterly basis. Besides,
one surprise check of each branch is conducted in a quarter.
For this purpose inspection teams are constituted to visit chests
and look into the following areas carefully: i) detail review
of chest’s books, records, internal controls and risk
coverage, ii) currency chests slips are serially numbered; iii)
currency chests registers are placed inside the currency bin;
iv) the confidential Cypher code book and check signals code
are in the personal custody of officer concerned and kept under
double lock. Codebooks are updated regularly.
Q22· What is a chest slip?
Ans. Currency chests report to Issue office
of SBP BSC (Bank) daily the information regarding deposits into
and withdrawals from the chests on a Form T.E- 2 known as chest
slip. Issue Departments of SBP BSC offices in which the chest
falls keep watch on their opening and closing balances. Further,
they should ensure that slips are being received in chronological
order.
Q23· What does currency transfer
mean?
Ans. Link branches of the National Bank of
Pakistan submit to Banking Department of local offices of SBP
BSC (Bank) a daily statement of currency transfers effected
at the currency chests on the prescribed form F-157. SBP BSC
(Bank) offices forward those statements to Karachi office, which
consolidates all the information, received from different offices.
Thereafter total net affect of deposits into or withdrawals
from the currency chests is adjusted by making payment to or
from the Banking Department. This adjustment is called currency
transfer.
Q24· How do deficiencies in
the balance of chests/bonded vaults are recovered and which
accounts are affected?
Ans. If shortages/deficiencies are detected
in the balance of chests/bonded vaults during the course of
detailed examination, the representatives of respective banks
make deficiencies/ shortages good. Deficiencies are made good
on spot and in case some deficiencies remains outstanding, account
of that bank is debited and other income miscellaneous account
of SBP BSC (Bank) is credited.
Q23a· How does holding capacity
of a chest is determined?
Ans. Holding capacity of a chest is determined
by keeping in view cash requirements of the area, expected transactions
on behalf of governments, storage capacity and security arrangements.
SBP BSC Issue offices replenish balances in the chests.
Q24b· What course will be adopted
if irregularities are detected in the balance of cancelled notes
at verification process?
Ans. If shortages are detected in the balance
of cancelled notes during the verification process, shortages
be made good from the concerned note examiner and in a case
shortages are not made good on spot by one reason or another,
such packets should be set aside from the rest of the balance
and kept in the custody of currency officer till the decision
in the case is finalized. Irregularities should be jotted down
on the reverse side of the destruction warrant. After having
set right the irregularities/shortage, those packets are destroyed
in the presence of currency officer with remarks recorded on
the destruction warrant.
Q25· Does the value of notes
credited to the Bank if excess balance is detected during the
verification process?
Ans. If excess balance is detected during
verification process, the value of such notes/balance should
not be credited to the Bank. The detected excess balance is
destroyed in the presence of currency officer and it should
be mentioned in the destruction warrant and disciplinary action
may be initiated against the concerned examiner, if necessary.
Q26· What are clearly payable
defective notes?
Ans. Procedure for processing defective notes
has been simplified to make quick payments against clearly payable
defective notes. Claim notes definition has been modified and
the Bank note is said to be a clearly payable defective note
if the same is partially cut/damaged or slightly burnt provided
its ¾ portion is intact, nevertheless the note is divided
into two pieces either horizontally or vertically.
Q27· Is normal claim procedure
is adopted for the claims tender by Commercial banks?
Ans. Following the adoption of simplified
procedure for quick disposal of soiled and defective notes,
claim notes tendered by commercial banks are now being accepted
without going into claim process and claim amount is credited
immediately. However, shortages or rejections are made good
from the respective banks subsequently after detailed examination.
Q28· Are disfigured Notes acceptable
as legal tender?
Ans. Bank notes that contain any inscriptions
in any form including slogans or messages or disfigured Quaid
portrait shall have ceased to be legal tender since 2nd June
1977. Banks and SBP BSC offices would not accept them as legal
tender.
BANKING DEPARTMENT
Q29· What types of Accounts
are maintained in Deposit Accounts Department (DAD)?
Ans. The Deposit Accounts Department maintains
current accounts of scheduled banks, non-scheduled and cooperatives
banks, local government, foreign institutions, foreign governments
and special deposit account of five commercial banks.
Q30· What documents are required
for opening of Current Account with SBP BSC (Bank)?
Ans. Different Financial entities and Governments
have to submit the following documents for opening of the current
accounts: -
Scheduled Banks Non- Scheduled Banks Local Bodies Foreign
Institutions &Foreign Governments
1 An application form (No. Bkg-34) duly signed by an authorized
official. An application form (No. Bkg-34) duly signed by an
authorized official. Account opening application form. The State
Bank advises SBP BSC (Bank) office about the opening of current
account in favour of foreign governments and Institutions alongwith
instructions regarding its operations.
2 Certificate of incorporation (under Companies act, 1913).
Certificate of registration by the Registrar. A copy of the
constitution of local bodies.
3 Certificate of commencement of business. Copy of the Byelaws
or Memorandum and articles of Association. Resolution of the
managing committee for opening account.
4 A copy of the Memorandum and Articles of Association, authenticated
by the Chairman or Board of Directors of the bank. Certificate
of commencement of business from the Registrar (not required
in case of cooperative societies).
5 A copy of the resolution passed by the Board of Directors
of the bank. Copy of resolution of the committee or Board of
Directors of the bank for opening account
6 A power of Attorney authorizing official of the bank to operate
on its current account. Power of Attorney to bank official for
operating current account of the bank.
7 Attested three specimen signatures of authorized officer of
the bank and should be verified by the officer of SBP BSC (Bank).
Three specimen signatures of the authorize officer. Three-specimen
signatures. Three-specimen signatures.
Q31· What cautions should be
exercised while entertaining Power of Attorney?
Ans. While entertaining the Power of Attorney,
SBP BSC (Bank) offices should undertake utmost care to ensure
that it is genuine and in a standard format. The Power of Attorney
should be definite and not conditional. The document should
be properly stamped as per prevailing current rate of stamp
duty. Besides, it should be properly authenticated by a Notary
Public or Magistrate under his seal and registered with the
registrar.
Q32· Could an Office open a
new head of account in General Ledger?
Ans. A General Ledger is the principal book
of accounts and financial statements are prepared on the basis
of balances in the general ledger account. In the general ledger
different heads of accounts are maintained at an office of SBP
BSC (Bank). These heads of accounts are prescribed by the Accounts
Department and an office could not open any new head of account
in the general ledger without the prior approval of the Accounts
Department. Credit balance in the general ledger reflects liabilities
and debit balance assets in the balance sheet of the Bank.
Q33· What is the difference
between Transfer scroll and Cash scroll?
Ans. Transactions settlements, which are
made through cheques and vouchers, are enumerated in the Transfer
scroll. Transfers vouchers (debit or credit) passed by different
sections are entered in the transfer scroll whereas Cash scroll
contains day’s record of all cash payments and receipts.
All cheques and vouchers paid in cash are branded with “Pay
Cash” order and those are entered in the credit column
of the cash scroll. Similarly, cash deposit pay in slips, vouchers
and applications for the government drafts, bank drafts, telegraphic
transfers and mail transfers, etc received back from Cash Department
alongwith receipt stamps are entered in the debit column of
cash scroll. Cash balance agrees with cash receipts and cash
paid by the Cash Department.
Q34·
What is the importance of Trail Balance Book?
Ans. Trial balance is a test to check correctness
of balances in the General Ledger Accounts. If the balances
appearing on debit side agree with the balances on credit side,
it is assumed that figure from clean cashbook has been transferred
to the General Ledger correctly and balance under each head
of account has been drawn without mistake. Compensating errors
committed in casting the balance in the General Ledger however,
could not detected.
Q35· What do we understand
by Clean Cash Book?
Ans. This book records each and every transaction
that affects any head of account in the Banking Department of
SBP BSC (Bank) office. The clean cashbook reflects complete
picture of the day’s transactions. It is compiled from
various vouchers prepared in different sections – vouchers
pertaining to transfer transactions (transfer scroll), cash
scroll, and balances transferred from Day’s Books and
Registers. Day’s Books and Registers record transactions
through cheques and vouchers pertaining to current Account,
remittances sold and encashment etc. The clean cash book is
declared to be balanced if grand total of the debit and credit
transactions agree with each other after adding to them the
previous day’s balance of cash and the balance of cash
in hand at the end of the day.
Q36· How do T.T. messages are
authenticated, and what types/ tools are available?
Ans. The telegraphic messages are coded/decoded
from the Cypher codebook of the Bank and the messages will be
authenticated by check signals compiled from the private check
signal books (Brown and Black covers).
Q37· Is a composite voucher
permissible (Partly cash and partly transfer)?
Ans. A composite voucher involving partial
payment in cash and partly by transfer is not permissible.
Q38·
How does mistake set right in books of Accounts?
Ans. In the book of accounts mistakes are
set right by reversing the entries under the original heads
of accounts by passing fresh vouchers to set right the position.
Q39· What kinds of Debit vouchers
require Chief Manager’s signature?
Ans. The Chief Manager or Deputy Chief Manager
on his behalf countersigns the following debit vouchers.
i) Adjusting Account.
ii) Income Accounts (Interest Discount, Commission etc.).
iii) Bill purchased and discounted.
iv) Loan and Advances Accounts.
v) Government Treasury bills purchased and discounted.
vi) Charges Account.
vii) Suspense Account.
viii) Sundry Deposit Account.
ix) Un cleared items of Credit Account.
P.A.D.
Q40· What is the difference
between Drawing Accounts and Assignment Accounts?
Ans. Drawing Accounts refer to the accounts
of officers of the government departments viz. Accountants Generals,
Comptrollers, Controller of Military Accounts, Collectors of
Customs and Executive Engineers which are allowed to draw funds
on the government Accounts from the State Bank without limit.
However, in case of Assignment Accounts, Accountant General
authorizes the State Bank to open Ledger Deposits Accounts in
favour of heads of government departments or Army units and
those are allowed to draw funds from the Bank upto a specified
amount earmarked for payment within the specified period.
Q41· What is the difference
between Assignment Accounts and Personal Ledger Accounts?
Ans. Under Assignment Accounts heads of department
viz. Post office, Army and Navy units are allowed to have assignment
accounts with the State Bank and they are allowed to draw funds
upto restricted balance earmarked in the accounts. While in
case of Personal Ledger Accounts, Departmental heads are allowed
to maintain accounts with the Treasury officers. Government
officers draw cheques on Treasury and later records order thereon
to the Bank to make payment.
Q42· What steps should be initiated
to stop fraud and forgery payment?
Ans. Fraud and forgery could be checked if
the following steps are carefully observed while processing
payment instruments and placing order for payment.
i) Processing officer must be agile and conversant with endorsements
and technical examinations of cheques/bills.
ii) The cheque/bill should be drawn on the office of SBP BSC
(Bank) at which it has been presented for payment.
iii) The cheque/bill should neither be stale nor post dated
(Government cheques remain current for 3 months after the month
of their issue, bills generally remain current for 30 days and
refund order for a period of one month from the date of their
issue).
iv) Instruments should be free from stop payment order.
v) Cheque/bill should be drawn properly and signed by the authorized
officials.
vi) The cheque belongs to the chequebook whose use advice has
already been intimated.
vii) Particulars of cheques/bill should synchronize with the
information contained in the advice/schedule.
viii) Amount in figures and words should agree.
ix) Instruments should be free from over writing and unauthorized
addition/alterations. It should not be crossed.
x) In case of order cheques the endorsement appearing on its
back should be regular.
xi) Identification of payee or payee discharge signature attested.
Q43· How do cheques and bills
become non-negotiable instruments?
Ans. Cheques and bills become non-negotiable
instruments when the Bank for payment defaces those cheques/bills.
Q44· What care should be done
when a Refund Order is presented for payment?
Ans. Before making payments, the refund order
should be examined to ensure that it is genuine and has been
signed by an officer having authority to do so. Further, the
office should have an advice from the issuing office of refund
order and payment should not be made before the receipt of such
advice.
Q45· Does SBP BSC (Bank) Office
make debt authority to Central Zakat Account?
Ans. Central Zakat Authority is the sole
authority to pass the debit voucher. SBP BSC (Bank) office could
not pass the debit voucher without having an advice from the
Central Zakat Authority.
Q46·
When does disbursement guarantee need?
Ans. Disbursement guarantees is required
if the beneficiary bank is different from the bank which presents
the instrument. Further, the beneficiary bank is located in
a city other than city where cheque is presented.
Q47· What are objections Memos
to refuse payment of a cheque?
Ans. The following are the notable objections
memos: -
i) Amount in word and figures differ.
ii) Banks Payee endorsement irregular/required.
iii) Post dated cheques.
iv) Cheque out of date/time barred.
v) Cheque is without date.
vi) Drawer signature differs.
vii) No chequebook intimation/refund order advice received.
viii) Payee’s discharge required.
ix) Pay order by the Treasury officer required.
x) Identity of payee/signatory required.
xi) Advice not received.
Q48·
What are important books of P.A.D.?
Ans. Following four major Abstracts are maintained
in PAD: -
i) Central – I Non-Food.
ii) Provincial – I Non-Food.
iii) Central – II and Provincial – II Food
iv) Transfer Scroll.
SECURITIES
Q49·
What is Open Market Operations (OMOs)?
Ans. Open Market Operations (OMOs) are a
powerful tool of monetary policy to control the level of banks’
liquidity. It refers to purchases and sales of government securities,
which affects banks reserves. SBP conducts OMOs to provide cash
accommodation to scheduled banks and, for this purpose it undertakes
reverse repo transactions with the banks while the scheduled
banks undertake repo transactions with SBP under 3-day repo
facility. At present repo rate or discount rate is 7.5% per
annum.
Q50· Who are eligible to participate
in MTBs Auctions?
Ans. All Primary Dealers (presently eleven
in numbers) could participate in the auctions of Market Treasury
Bills.
Q51· Could an individual buy
MTBs?
Ans. Yes, an individual could buy Market
Treasury Bills (MTBs) through banks or in the secondary market.
Q52· What are MTBs and what
is the rate of profit?
Ans. Market Treasury Bills (MTBs) are short-
term instruments of borrowings by the government. These bills
are sold on discount. MTBs are issued in three tenors i.e. 3
–month, 6 – month and 12 – month, Auctions
are held on fortnightly basis on every alternate Wednesday.
Average yields on the last auctions of MTBs are as under: -.
i) Three months. 1.49 percent P.A
ii) Six months 1.74 percent P.A
iii) Twelve months 1.97 percent P.A
Q53· What is the difference
between OMOs and Auctions of MTBs?
Ans · State Bank of
Pakistan conducts Open Market Operations (OMOs) as a tool of
liquidity management i.e. purchase and sale of government securities
from banks. For liquidity management SBP conducts open market
operations through use of repos, reverse repos, and out right
sale of government securities. While MTBs Auctions are held
for managing domestic public debt.
Q54· What are SGL and Investors
Portfolio Security (IPS) Accounts?
Ans. Subsidiary General Ledger account (SGL)
is a book based clearing settlement system. Subsidiary General
Ledger accounts are opened to facilitate secondary market transactions
among accounts holders. These accounts are opened at the Public
Debt office of SBP BSC (Bank) Karachi only. All banks and Non-bank
Financial Institutions (NBFIs) having current accounts with
the Bank are eligible to become members. While Investors Portfolio
Securities (IPS) refer investors’ holdings in different
governments securities. Investors may keep investments in form
of un-certificated bonds and the same are kept in portfolio
of securities of banks/NBFIs maintaining their SGLA with SBP
BSC (Bank).
Q55·
What is the rate of tax on profit from MTBs?
Ans. Tax on the profit of MTBs is levied
@ of 20% for banks and NBFIs.
Q56· What do we understand
by Foreign Currency Loan Repayment Bonds?
Ans. Foreign Currency Loan Repayment bonds
were issued to Nationalized banks in lieu of compensation to
construction companies working abroad. These bonds were issued
for a period of 20 years.
Q57·
What are Special Government Bonds?
Ans. These bonds were issued to State Life
Insurance Corporation in 1981 for a period of 15 years.
Q58· What was maturity period
for Federal Investment Bonds?
Ans. The scheme of Federal Investment Bonds
was launched in 1991 and bonds were issued in three different
maturities i.e. Three, Five and Ten years and the rate of profit
was fixed at 13%, 14% and 15% respectively per annum.
Q59·
Is Redemption of FIBs before maturity permissible?
Ans. Redemption of FIBs before maturity is
not permissible.
Q60·
At what intervals profits on PIBs are paid?
Ans. Profit on PIBs is paid for biannually.
Q61·
Does inter bank/NBFIs transfer of PIBs permissible?
Ans. Yes, Inter bank/NBFIs transfer of PIBs
is permissible.
Q62·
What are Index Cards?
Ans. Index cards are the schedule or a record
of payments of profit on physical scripts.
Q63·
Is Repo facility available to SGL accounts holders?
Ans. Yes, Repo facility is available to SGL
account holders.
Q64·
What is reverse Repo?
Ans. When the Central bank buys MTBs from
the banks to provide them liquidity.
Q65·
What do we understand by PDO-31 and PDO-32?
Ans. PDO – 31 is a prescribed form used
for issuance of physical scripts by debiting SGL Account. While
PDO – 32 is used when physical scripts are submitted for
credit to SGL Accounts.
Q66· What is the rate of commission
paid to Primary Dealers and what head of Account is debited
for the payment of commission?
Ans. Commission is paid to Primary Dealers
on sale proceeds of Pakistan Investment Bonds (PIBs) @ 0.5%
on amount of bid accepted or 3.5% of the target amount whichever
is less. Commission is paid to Primary Dealers by debiting the
Government Non-Food Account and credits the amount to the respective
bank’s account.
Q67· To whom PIBs are sold?
Pakistan Investment Bonds (PIBs) are script less scheme, which
was introduced in December 2000 to replace FIBs. These bonds
are sold to Primary Dealers through auctions. At present the
following institutions are declared as Primary Dealers: -
Habib Bank Limited. Standard Chartered Bank
National Bank of Pakistan Citi Bank
United Bank Limited. American Express Bank
Union Bank Limited Jahangir Siddique & Company Limited
Bank Al-Falah Limited Pak Oman Investment Bank.
ABN Amro Bank
Q68·
What is the current rate of profit on PIBs?
Ans. Following are the current rate of profit
on Bonds of various maturities:-
i) Three years. 6.0%
ii) Five years. 7.0%
iii) Ten years. 8.0%
iv) Fifteen years 9.0%
v) Twenty Years 10.0%
Q69·
What is the rate of withholding tax on interest of PIBs?
Ans. With holding tax is levied @ of10% on
interest of PIBs.
Q70· What do we understand
by PDO-124?
Ans. PDO-124 is a prescribed form used to
apply for profit payments to investors/ beneficiaries of PIBs
having SGL Account.
Q71· What are requirements
for opening of SGL?
Ans. Banks/NBFIs having current accounts
with SBP BSC (Bank) are eligible to open SGL Account.
Q72· What is the mode of payment
of profit on PIBs if kept in SGL (script less)?
Ans. Profit is paid to beneficiaries by crediting
their current accounts if PIBs are kept in SGL Account. While
interest warrant is issued to make profit payments if bonds
are in physical scripts.
Q73·
What is Jumbo Auction?
Ans. The Ministry of Finance has introduced
Jumbo Auction of PIBs with a total target of Rs.50 billion.
Auctions were held in three consecutive months i.e. October,
November and December2003 having the same date of auction as
06-10-03.
EXPORT REFINANCE
Q74·
What is the purpose of Export Refinance Scheme?
Ans. With a view to attain sustainable growth
in exports and its importance in the growth of economy, State
Bank of Pakistan introduced a scheme known as “Refinance
Scheme” in 1973 to meeting the genuine credit requirements
of exporters. The scheme was launched to promote the exports
of non-traditional and newly emerging commodities. The scope
of the scheme has been enlarged over the period and was revamped
and named as Export Finance Scheme in October 1977. Under the
Export Finance Scheme all scheduled banks provide concessionary
credit facility to exporters and obtain refinance from State
Bank of Pakistan.
Q75· What is the difference
between Part-I and Part-II of Export Finance Scheme?
Ans. The scheme operates in two parts viz.
Part-I and Part-II. Under Part-I, the commercial banks provide
concessionary finance to exporters and obtain refinance from
the State Bank on pre-shipment and post- shipment basis for
financing exports of eligible commodities against firm contract/irrevocable
Letter of Credit. Under Part-II of the scheme, finance is provided
to exporters on the basis of export performance/earnings achieved
in the proceeding year. Exporters may avail export finance limit
equivalent to 50% of their exports earnings through submission
of EE-1 duly verified by the Foreign Exchange Operations Department
of the Bank.
Q76· What is the maximum quantum
of annual Refinance limit allowed to an Individual bank?
Ans. The State Bank of Pakistan determines
the maximum quantum of annual refinance limit to individual
banks. This limit should not exceed 3.75 times of the equity
of the bank. However, the limit for foreign banks is determined
on the basis of amount maintained by them under section 13 of
the Banks Companies Ordinance 1962.
Q77·
What is the period of Refinance?
Ans. Financing facility is provided for a
period of 180 days to direct exporters and 120 days to indirect
exporters. However, an additional 90 days are allowed to the
exporters of carpet and rugs provided shipment is made within
180 days.
Q78· What is the rate of Refinance?
Ans. Rate of refinance under Export Finance
Scheme has been slashed drastically over the period and currently
it stands to 1.5 percent. However, commercial banks should extend
financing facility to exporters by ensuring that their maximum
margin spread should not exceed 1.5 percent. The rate is now
being reviewed/fixed on monthly basis.
Q79· At what frequency banks
make payment of profits to SBP?
Ans. Banks make payments of the provisional
profit on quarterly basis to the concerned office of SBP BSC
(Bank) on or before of the following month of the quarter.
Q80· At what rate fines are
levied under Part-I and Part- II of the Scheme on rendering
of different irregularities?
Ans. Scales of fines under Part-I & Part
-II of the Scheme is as under: -
Part-I
Non-Shipment Delayed Shipment /Short Shipment
@ Ps.37 per Rs.1000/- per day @ Ps.28 per Rs.1000/- per day
Part –II
Non Submission of EF Statement Short Fall Late Submission
@ Ps.37 per Rs.1000/- per day. @ Ps.28 per Rs.1000/- per day
when short fall is up to 50% and Ps. 37 per Rs. 1000 if fall
is above 50%. Rs.2000 for the delay and Rs.100 per day of default
Q81·
Does an indirect exporter qualify for Export Refinance?
Ans. Yes, an indirect export is eligible
to avail finance from banks against inland Letter of Credit
or Standardized Purchase Order (SPO) to the extent of amount
mentioned therein.
Q82· What is Harmonized code
for commodity for providing Export Refinance?
Ans. It is an International product nomenclature
developed by the World Customs Organization (WCO). The basic
purpose of this system is to achieve uniform classification
of products. This system is used as basis of customs tariff
and collection of international trade statistics.
Q83· Is substitution of eligible
commodities with another firm export order permissible?
Ans. Substitution of commodities with other
eligible commodities in respect of another firm export order
is permissible to an exporter who fails to make shipment against
original confirm export order/LC, provided the exporter undertakes
that he has neither availed of refinance under EFs against an
earlier order nor on new contract/LC.
Q84· Is facility of substitution
for supplying of inputs by indirect exporters permissible?
Ans. Facility of substitution is not available
to indirect exporters in respect of supply of inputs to direct
exporters.
Q85· Is there any time frame
work for allowing Export Refinance by the SBP BSC (Bank) Offices?
Ans. SBP BSC (Bank) office concerned processes
and grant refinance facility to banks within 48 hours on receipt
of refinance claim by banks as per Form “D’ complete
in all respects alongwith “DP Note”.
SPECIAL SAVINGS CERTIFICATES/
DEFENCE SAVINGS CERTIFICATES
Q86· Does purchase/sale of
SSCs & DSCs from Scheduled banks permissible?
Ans. Sale of Special Savings Certificates
and Defense Savings Certificates from scheduled banks outlets
has been suspended since 16th June 2003. However, sale of SSCs/DSCs
is continued through authorized banks (HBL, UBL) branches operating
in UAE for the convenience of overseas Pakistani.
Q87· Will encashment of SSCs
before six months and DSCs before one year fetch profit?
Ans. Encashment of SSCs before six months
and DSCs within first year of investment do not fetch any profit.
Q88· What requirements are
to be fulfilled for issuance of duplicate certificates both
in case of lost and theft?
Ans. In case of lost/theft, the investor
or his nominee or heir is entitled to “declaration in
lieu”. The issuing office, upon furnishing particulars
of the certificate and statement showing circumstances under
which the certificates are lost or destroyed issues a “declaration
in lieu”. The office should also obtain Indemnity bond
from the person to whom duplicate certificates are being issued.
Q89· Is transfer of SSCs/DSCs
from issuance Office to another Office of SBP BSC (Bank) permissible?
Ans. a) Yes, transfer of SSCs/DSCS from one
office to another office of SBP is permissible.
b) Certificates are transferable from one individual to another
individual on written authority of Bank officer, National Savings
Officer and first class Postmaster/ Superintendent of Post office.
However, under no circumstance, a certificate held on the behalf
of a minor is transferable to any person other then the minor
concerned.
Q90· What is the rate of transfer
fee from one office to another office?
Ans. A fee of rupee one is charged on application
for transfer.
Q91· What Steps/Actions SBP
BSC (Bank) office should take if SSCs/DSCs are pledged for securing
loans?
Ans. Issuing office would mark the certificate
“pledged” in favour of the institution providing
loan besides, it should mark “stop payment” on the
original application from Form “4-B’.
Q92· What is the maximum limit
of loan permissible on pledging of SSCs/DSCs?
Ans. The maximum amount of loan of Rs.1 million
is permissible currently under the rule.
Q93· What is the maximum purchase
limit of SSCs/DSCs by an individual living abroad?
Ans. An individual could purchase certificates
(SSC/DSC) worth Rs.10 million.
Q94·
What is the rule for re-investment of DSCs upon their maturity?
Ans. Upon maturity of DSCs reinvestment is
permissible alongwith profit while in case of SSCs profit can
be withdrawn before re-investment.
Q95·
Why coupons are replaced with chequebook on SSCs?
Ans. Chequebooks are being issued owing to
stop the misuse of unused coupons.
SPECIAL US DOLLAR BONDS
Q96·
Is sale of fresh US Dollar Bonds permissible?
Ans. The sale of fresh U.S. Dollar Bonds
has been suspended vide Exchange & Debt Management Department
Circular No.03 dated 22-03-2003.
Q97·
What is the rate of return on special U.S. Dollar Bonds?
Ans. Rate of return on Special U.S. Dollar
Bonds is as under: -
Bonds issued before 03-09-1999 Bonds issued on or after 03-09-1999
3 Years 2% (Plus Libor) 1.0% (Plus Libor
5 Years 3% (Plus Libor) 1.5% (Plus Libor)
7 Years 4%(Plus Libor) 2.0% (Plus Libor)
Q98·
What is mode of payment of profit on USDBs?
Ans. Profit on Special U.S. Dollar Bonds
is paid both in U.S. Dollar and Pak Rupee depending upon the
discretion of holders.
Q99· How does encashment of
Special USDBs is made both at pre-maturity and maturity of Bonds?
Ans. Encashment of Special U.S. Dollar Bonds
can be made both on pre-maturity and maturity basis.
Q100· Does re-investment of
Special USDBs after maturity permissible?
Ans. Reinvestment of Special U.S. Dollar
Bonds after maturity has been discontinued w.e.f. 16-9-2002
vide EDMD Circular No.16 dated 7-10-2002.
Q101· What procedural requirements
to be fulfilled by Banks/NBFIs regarding lost of USDBs both
registered and bearer for issuance of duplicate bonds?
Ans. The following procedural requirements
are to be met by Banks/NBFIs if Special U.S. Dollar Bonds (Registered)
are declared lost: -
a) Application from claimant to be addressed to Chief Manager,
SBP BSC (Bank) office for issuance of duplicate Special U.S.
Dollar Bonds in lieu of lost one.
b) Copy of FIR with its translation.
c) Two affidavits duly attested by 1st Class Magistrate.
d) Publication of particulars of lost Special U.S. Dollar Bonds
in two dailies (English/Urdu)
e) Surety Bond (double in value)
In case of lost of Special U.S. Dollar Bonds (Bearer), in addition
to the above requirements publications of Notification in three
successive issues of Gazette of Pakistan as well as in the local
official Gazette are needed.
PRIZE BONDS
Q102·
What are the sale points for Prize Bonds to Public?
Ans. Following are the sale points for Prize
Bonds to Public.
a) All offices of SBP BSC (Bank);
b) National Savings Centers;
c) Scheduled Banks; and
d) Head Post Offices.
Q103. · How many denominations
of Prize Bonds are in vogue and numbers of prizes on different
denominations of prize bonds?
Ans. Prize Bonds are issued in the following
denominations and numbers of prizes thereon are as under: -
Denominations No. of prizes Prize money
Rs.200/- 1st Prize2nd PrizeCommon prizes (1)(3)(1550) Rs.500,000/-Rs.150,000/-
eachRs.1,000/- each
Rs.750/- 1st Prize2nd PrizeCommon prizes (1)(3)(996) Rs.1,000,000/-Rs.300,000/-
eachRs.7,500/ each-
Rs.1500/- 1st Prize2nd PrizeCommon prizes (1)(3)(996) Rs.2,000,000/-Rs.600,000/-
eachRs.15,000/- each
Rs.7,500/- 1st Prize2nd PrizeCommon prizes (1)(3)(996) Rs.10,000,000/-Rs.3,000,000/-eachRs.75,000/-
each
Rs.15,000/- 1st Prize2nd PrizeCommon prizes (1)(3)(996) Rs.20,000,000/-Rs.6,000,000/-
eachRs.150,000/- each
Rs.40,000/- 1st Prize2nd PrizeCommon prizes (1)(3)(996) Rs.50,000,000/-Rs.15,000,000/-eachRs.
400,000/- each
Q104. · What is the shut period
for re-issuable Prize Bonds of different denominations?
Ans. The minimum period for holding of prize
bonds of any denomination is two months before its draw. Bonds
issued or sold two months preceding the date of draw qualify
for prizes in forth coming draw.
Q105· What procedure is followed
regarding Sale/Encashment of Prize Bonds to Commercial Banks?
Ans. Banks and Post offices give one day’s
prior notice to SBP BSC (Bank) office for purchasing of prize
bonds. Upon receipt of such advice, cash Department makes arrangements
for delivery of prize Bonds to Banks/Post offices through special
counters. Banks/Post offices make payment for bonds by way of
depositing cheques drawn on their accounts with SBP BSC (Bank)
office. In case of encashment by banks/Post offices payment
is made to them by crediting their accounts maintained with
the Bank.
Q106· In what book of accounts
stock of fresh Prize Bonds are registered?
Ans. Stocks of fresh Prize Bonds are registered
in PB-15
Q107·
Where Stock of re-issuable Prize Bond is registered?
Ans. PB-16 entails stock of re-issuable Prize
Bonds.
Q108· In which book of accounts
Prize Winning numbers are listed?
Ans. PB-18 contains record of the prize money
paid to prize- winners (both to general public and government).
It also reveals information regarding PDOs from where the prize-winning
bonds were issued.
Q109·
What does PB-20 provide information?
Ans. This book contains information regarding
date-wise sale and encashment of prize bonds.
Q110·
What is the importance of PB-35?
Ans. Maintaining of PB-35 serves as an effective
check over misappropriation or defalcation of the stock of re-issuble
prize bonds after the suspension of sale of re-issuable prize
bonds. Banks, National Saving Centers and Post Offices have
also to report to respective office of SBP BSC (Bank) of such
stock of bonds on PB-35 form.
Q111. · In which book entries
regarding irregularities/errors committed by sorters, counters
and checkers are recorded?
Ans. PB-50 is maintained to record errors/irregularities
committed by sorters, enumerators and checkers.
Q112· What is the importance
of destruction of defaced bonds one day before the draw?
Ans. Since prize bonds of specific denomination
are destroyed one day before its draw and, therefore, the question
of payment of prize money there against if, any to individual
or government does not arise.
